Explanatory Statement
Accounting Standard AASB 2009-8 Amendments to Australian Accounting Standards – Group Cash-settled
Share-based Payment Transactions
July 2009
EXPLANATORY STATEMENT
Standards Amended by AASB 2009-8
This Standard makes amendments to the following Australian Accounting Standards AASB 2 Share-based Payment and supersedes Interpretation 8 Scope of AASB 2 and Interpretation 11 AASB 2 – Group and Treasury Share Transactions.
These amendments arise from the issuance of Group Cash-settled Share-based Payment Transactions (Amendments to IFRS 2) by the International Accounting Standards Board in June 2009.
Main Features of this Standard
Application Date
This Standard is applicable to annual reporting periods beginning on or after 1 January 2010. Early adoption is permitted for annual reporting periods beginning on or after 1 January 2005 but before 1 January 2010.
Main Requirements
The amendments to clarify the scope of AASB 2 by requiring an entity that receives goods or services in a share-based payment arrangement to account for those goods or services no matter which entity in the group settles the transaction and no matter whether the transaction is settled in shares or cash.
The amendments incorporate the requirements previously included in Interpretation 8 and Interpretation 11 and as a consequence these two Interpretations are superseded by the amendments.
Consultation Prior to Issuing AASB 2009-8
The AASB issued AASB 2009-8 after a due process, which included the issue of ED 161 Proposed Amendments to AASB 2 Share-based Payment and AASB Interpretation 11 AASB 2 - Group and Treasury Share Transactions - Group Cash-settled Share-based Payment Transactions in January 2008. The AASB received six submissions on ED 161, that were generally supportive of the proposals in the ED.
A Regulation Impact Statement has not been prepared in connection with the issue of AASB 2009-8 as the amendments made do not have a substantial direct or indirect impact on business or competition, are of a minor or machinery nature or clarify existing requirements.